Debts Subject To Divorce Property Division As Are Student Loans
Posted on Apr 25, 2014 12:00am PDT
Readers in Georgia, Georgia, know that dissolving a marriage is one of
the most difficult chapters in a couple's history. Many issues must
be discussed before the process is finalized. Property division is one
divorce issue that addresses the equitable distribution of property, assets
and debts. Georgia is an equitable distribution state which always provides
a fair and just division of marital assets.
Some spouses may be unaware that division of marital property also includes
all marital debts, including student loans. However, spouses should also
be aware of when a student debt was assumed because that date can affect
the division of marital assets during divorce. If the student loan was
incurred before the couple was married, the debt will be considered a
separate property by the person who took the loan and therefore will not
be subjected to division.
In cases where the student loan was floated during marriage, the debt is
likely to be treated as amarital property and therefore subject to division.
It is a tricky process as some judges have discretion in deciding on how
to divide debt. Often, a spouse's contribution to education advancement
of the other will be taken into consideration. If a spouse will be unfairly
burdened with debt once the marriage has ended, the other spouse may be
subject to paying spousal support that includes an amount that can address the debt.
The division of student loans is just one tricky area of property division
for Georgia residents. People should make sure they have a firm grasp
on all their assets and liabilities before trying to settle their property
division issues during a divorce.